Uniti Group Inc. Announces Pricing of $960.1 Million Kinetic Fiber Securitization Notes Offering

Rhea-AI Summary

Uniti Group (Nasdaq: UNIT) announced pricing of a $960.1 million secured fiber network revenue term notes offering by Kinetic ABS Issuer LLC, consisting of Class A-2 $677.71M at 5.219%, Class B $112.96M at 5.561% and Class C $169.43M at 7.653%, with a weighted average coupon of ~5.689% and anticipated repayment in February 2031. The Notes are expected to be secured by residential fiber assets and related customer agreements in Arkansas, Georgia, Kentucky, Ohio and Texas. Closing is expected on January 30, 2026. The Issuer expects a $150.0M variable funding note facility plus a liquidity funding note facility; net proceeds will be used for general corporate purposes, including possible capital expenditures or debt repayment.

Positive

• Raises $960.1M of non‑equity financing
• Secured by fiber assets in 5 states
• Weighted average coupon of ~5.689% for diversified tranches
• Expected closing on Jan 30, 2026

Negative

• Weighted coupon implies notable interest expense over term
• Issuer and parents designated as unrestricted subsidiaries
• Variable funding availability subject to leverage tests
• Notes limited to QIB/Reg S buyers, reducing resale liquidity

News Market Reaction – UNIT

+0.13%

1 alert

+0.13% News Effect

On the day this news was published, UNIT gained 0.13%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Total term notes: $960,100,000 Class A-2 notes: $677,710,000 Class B notes: $112,960,000 +5 more

8 metrics

Total term notes $960,100,000 Aggregate principal amount of secured fiber revenue term notes

Class A-2 notes $677,710,000 5.219% Series 2026-1, anticipated repayment Feb 2031

Class B notes $112,960,000 5.561% Series 2026-1, anticipated repayment Feb 2031

Class C notes $169,430,000 7.653% Series 2026-1, anticipated repayment Feb 2031

Weighted avg coupon 5.689% Weighted average coupon rate across all classes of Notes

Variable funding facility $150,000,000 Expected variable funding note facility with delayed commitment feature

Current share price $7.50 Share price before this news, up 1.44% over prior 24h

Market capitalization $1,852,531,519 Equity value prior to the securitization pricing announcement

Market Reality Check

Price: $8.05 Vol: Volume 2,173,157 is 0.82x...

normal vol

$8.05 Last Close

Volume Volume 2,173,157 is 0.82x the 20-day average of 2,654,291 shares. normal

Technical Shares at $7.50, trading above the 200-day MA of $5.69 and 10.71% below the 52-week high of $8.40.

Peers on Argus

UNIT gained 1.44% with mixed REIT peers: FPI, LAND, OUT, and PCH up 0.45–2.57%, ...

UNIT gained 1.44% with mixed REIT peers: FPI, LAND, OUT, and PCH up 0.45–2.57%, while EPR slipped 0.60%. No peers appeared in the momentum scanner, suggesting a stock-specific move.

Historical Context

5 past events · Latest: Jan 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	AI fiber expansion	Positive	-2.4%	Large AI-driven dark-fiber build with long-term customer contract.
Jan 08	ABS offering launch	Neutral	-1.5%	Launch of $960.1M secured fiber revenue term notes offering.
Dec 22	Community initiative	Positive	+1.4%	Nationwide Kinetic Kindness giving campaign across multiple regions.
Dec 02	Conference participation	Neutral	+0.6%	Management participation at Raymond James 2025 TMT and Consumer Conference.
Nov 25	Fiber build milestone	Positive	+5.2%	Surpassing 25,000 fiber homes passed in Broken Arrow area.

Pattern Detected

Recent Uniti news skewed positive (network expansion, community milestones), yet one major AI-driven fiber expansion saw a negative price reaction, while financing-related offerings typically produced modest single-digit moves.

Recent Company History

Over the last few months, Uniti issued several updates tied to fiber growth and financing. A major AI-focused dark-fiber expansion anchored by a 20-year, >$500 million contract on Jan 13, 2026 saw shares fall 2.43%. Multiple securitization offerings and pricings in late 2025 and early 2026, including fiber ABS tied to various states, generally moved the stock by only low single digits. Community and buildout milestones, such as 25,000 homes passed in Broken Arrow, drew more clearly positive reactions.

Market Pulse Summary

This announcement details the final pricing of $960.1 million in secured fiber network revenue notes...

Analysis

This announcement details the final pricing of $960.1 million in secured fiber network revenue notes across three tranches, plus an expected $150 million variable funding facility. The structure mirrors Uniti’s prior fiber securitizations, using residential fiber assets in several states as collateral and targeting repayment around February 2031. Investors may watch how proceeds are allocated between success-based capital spending and debt repayment, and how this financing interacts with existing ABS programs and overall leverage.

Key Terms

bankruptcy remote, indentures, liquidity reserve, rule 144a, +1 more

5 terms

bankruptcy remote financial

"Kinetic ABS Issuer LLC, a limited-purpose, bankruptcy remote subsidiary of Uniti"

A “bankruptcy remote” structure is a legal setup that keeps certain assets or a subsidiary separate so they are unlikely to be dragged into a parent company’s bankruptcy. Think of it like placing valuables in a locked safe apart from the main house: if the house faces trouble, those assets are intended to stay protected, which matters to investors because it reduces the chance of losing value or cash flows tied to those isolated assets.

indentures financial

"under Uniti’s credit agreement and the indentures governing its outstanding senior notes"

Indentures are the written contracts that set out the terms and protections for a debt issue, such as a bond or note, including payment schedule, interest rate, collateral, and what happens if the borrower misses payments. Think of it like the rulebook and safety features for a loan that both the borrower and lenders agree to; investors use it to assess their rights, recoveries in trouble, and limits on the issuer’s future actions.

liquidity reserve financial

"may be drawn solely to support the transaction’s liquidity reserve and to cover"

Cash or assets that a company or fund keeps on hand that can be quickly turned into cash to pay bills, cover unexpected costs, or take advantage of opportunities. Think of it as a business’s emergency fund: it reduces the risk of running short of money, helps meet investor redemptions or debt payments, and signals financial stability—important signals for investors judging short-term safety and solvency.

rule 144a regulatory

"offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"and outside the United States in compliance with Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

AI-generated analysis. Not financial advice.

LITTLE ROCK, Ark. , Jan. 15, 2026 (GLOBE NEWSWIRE) -- Uniti Group Inc. (the “Company,” “Uniti,” or “we”) (Nasdaq: UNIT) today announced that Kinetic ABS Issuer LLC, a limited-purpose, bankruptcy remote subsidiary of Uniti (the “Issuer”), has priced its offering of $960,100,000 aggregate principal amount of secured fiber network revenue term notes, consisting of $677,710,000 5.219% Series 2026-1, Class A-2 term notes, $112,960,000 5.561% Series 2026-1, Class B term notes and $169,430,000 7.653% Series 2026-1, Class C term notes, each with an anticipated repayment date in February 2031 (collectively, the “Notes”). Collectively, the Notes have a weighted average coupon rate of approximately 5.689%. The Notes are expected to be secured by certain residential fiber network assets and related customer agreements in the States of Arkansas, Georgia, Kentucky, Ohio and Texas. Each of the Issuer and its direct parent entity and subsidiaries will be designated as “unrestricted subsidiaries” under Uniti’s credit agreement and the indentures governing its outstanding senior notes. The offering is expected to close on January 30, 2026.

In connection with the closing of the offering of the Notes, the Issuer expects to enter into a $150,000,000 variable funding note facility with a delayed commitment availability feature, subject to the satisfaction of leverage tests and other customary availability/drawing conditions. The Issuer also expects to enter into a liquidity funding note facility, which may be drawn solely to support the transaction’s liquidity reserve and to cover specified payment shortfalls. The variable funding notes and the liquidity funding notes will be governed by the same indenture that will govern the Notes.

Uniti intends to use the net proceeds of the offering of the Notes for general corporate purposes, which may include success-based capital expenditures and/or repayment of outstanding debt.

The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The Notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT UNITI

Uniti is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. We build, operate, and deliver fast and reliable communications services, empowering more than a million consumers and businesses in the digital economy. Our broad portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding the offering of the Notes and use of proceeds therefrom. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: the levels of demand for our residential fiber network services within the markets related to the Notes, general market conditions within such markets, our ability to maintain and grow our residential fiber network services within these markets, unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to Uniti’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Uniti and its predecessor’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as Uniti’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. The Company does not assume any obligation to update any forward-looking statements. Uniti expressly disclaims any obligation to release publicly any updates or revisions to any of the forward-looking statements set forth in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

INVESTOR CONTACTS:

Paul Bullington, 251-662-1512
Senior Executive Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com

Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com

MEDIA CONTACTS:

Scott L. Morris
Associate Director, Media & External Communications
501-580-4759
scott.l.morris@uniti.com

Brandi Stafford
Vice President, Corporate Communications
501-351-0067
brandi.stafford@uniti.com

This press release was published by a CLEAR® Verified individual.

FAQ

What amount and tranches did Uniti (UNIT) price on Jan 15, 2026?

Uniti priced $960.1M of notes: Class A‑2 $677.71M, Class B $112.96M, Class C $169.43M.

What is the weighted average coupon and repayment date for Uniti's 2026-1 notes?

The notes carry a weighted average coupon of ~5.689% with anticipated repayment in February 2031.

What assets secure the Uniti Kinetic ABS notes offering (UNIT)?

The notes are expected to be secured by residential fiber network assets and customer agreements in Arkansas, Georgia, Kentucky, Ohio and Texas.

When is the Uniti (UNIT) securitization transaction expected to close and what facilities accompany it?

The offering is expected to close on January 30, 2026 and includes an expected $150M variable funding note facility plus a liquidity funding note facility.

How does Uniti (UNIT) plan to use net proceeds from the securitization?

Uniti intends to use net proceeds for general corporate purposes, which may include success‑based capital expenditures and repayment of outstanding debt.